Washington: The World Bank has said in a report that the poverty rate in Pakistan was 25.3% during 2024, which is 7% more than in 2023 and another 13 million Pakistanis fell into poverty in one year.
The World Bank’s ongoing report has pointed out that the poverty rate is a reflection of the economic turmoil caused by pandemics, floods and macroeconomic crises.
During the Corona crisis in 2019, poverty in Pakistan increased from 21.9% to 24.6%, after the crisis ended, the poverty rate decreased for 2 consecutive years to 17.1% in 2022.
However, the worst floods in 2023 destroyed infrastructure, which led to a decrease in agricultural production, record inflation and an economic crisis, which led to a rise in poverty once again.
According to the report, labor income has been the main driver of poverty reduction. People move to better-paying jobs in normal times. Better income acts as a cushion in averting negative impacts.
Just as the poverty rate gradually decreased after the end of Corona in 2019, the process of economic recovery began in 2024 after the worst inflation in 2023, due to which it is likely that the poverty rate will decrease to 18.7 percent in 2025.
